- within Consumer Protection topic(s)
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Washington Attorney General Nick Brown announced that his office reached a settlement with Lexyl Technologies and Bookonline.com, resolving allegations that the companies “deceptively tacked on unnecessary fees" when consumers booked hotel rooms online. As part of the settlement, the companies agreed to pay more than $750,000 in restitution to consumers and $300,000 to the AG.
In announcing the settlement, Brown said, “Travelers were looking for deals and instead were saddled with extra fees they didn't need.”
In this case, the AG alleged that when consumers booked hotel rooms, the companies automatically added a “refund protection” fee using a pre-checked box, making it appear as if the cost was a mandatory fee (even though it wasn't). Apparently, in order to opt-out of the fee, consumers had to click a box next to a grey disclaimer at the bottom which said, “Downgrade your experience to no refunds and no exchanges for any reason.” The AG argued that this practice violated not only the Washington Consumer Protection Act, but the federal Restore Online Shoppers' Confidence Act.
As part of the settlement, the companies agreed not to charge this fee in the future unless consumers affirmatively opted-in to the service.
"Travelers were looking for deals and instead were saddled with extra fees they didn't need”
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